Bethelehem Steel Poised To Dominate Rail Market

The Bethlehem Steel's rail mill at Steelton, Dauphin County, is poised for a return to dominance in that market, according to retiring Chairman Walter F. Williams.

Williams said the Steelton Rail Products and Pipe Division management is very close to a finalized labor contract with the 2,000 workers there, which will open the door for a modernization project.

"If we get a final decision with the Steelworkers, and that looks pretty good, it gives us the ability to control our costs," said Williams, who steps down as chairman Oct. 31. "We are negotiating for the technology we need in rail head hardening, and we could go forward with what I consider a relatively modest modernization program of $60-$70 million. We can ... end up with a very competitive, high-quality business at Steelton. We've got to get all these things settled."

The plant already has an electric furnace to melt scrap steel, and a continuous caster, considered the latest technology in steel product production. An industry analyst said last week a rail mini-mill was being planned for Arkansas with the sole objective of putting Steelton out of business. With a new contract, Steelton's modernization could be completed much faster than a new plant could be built.

"We can compete with anybody," responded Williams. "We've been in the rail business for 100 years. We know the business. We know the customers. If somebody wants to get into the ball game, they'll have to take the risk of taking us on, head-on."